SEOUL — Korean Air Co. has entered a preliminary agreement to sell the cargo business of Asiana Airlines to Air Incheon for 470 billion won (approximately US$341.7 million). This move comes as part of the regulatory conditions stipulated by the European Union to approve Korean Air's acquisition of Asiana Airlines.
According to Yonhap News Agency, the selection of Air Incheon, a dedicated cargo airline, as the preferred bidder in June was based on its proven reliability, capability to maintain and develop long-term business competitiveness, and its ability to secure funding through a competent consortium. The deal is a key component in complying with the demands of the European Union's antitrust regulator and has been coordinated with continuous discussions involving the Korea Development Bank, Asiana's main creditor, and EU competition authorities.
Looking ahead, Korean Air will proceed with a buyer assessment and await the final merger approval review from the EU, marking critical steps towards finalizing the acquisition of Asiana Airlines.